New-Zealand based cryptocurrency exchange, Cryptopia is shutting down and has already been placed under liquidation. A statement from Grant Thornton, an accounting company stated that the consecutive hacks which took place in January this year had a severe impact on the trading.
A little background: Cryptopia had reportedly suffered a security breach which resulted in significant losses, as per tweeted by the exchange. The breach occurred on 14th January 2018, and the exchange had not posted any number of losses incurred.
As per a report by Elementus, a blockchain infrastructure firm, the loss was estimated to be around $16 million. The analysis had said, “The funds were taken from more than 76,000 different wallets, none of which were smart contracts. The thieves must have gained access to not one private key, but thousands of them.”
The official post of the exchange said, “Once identified by staff, the exchange was put into maintenance while we assessed damage. Staff then notified and involved the appropriate Government Agencies, including NZ police and High Tech Crimes Unit who are jointly and actively investigating the matter as a major crime and they are assisting us with advice.”
The exchange stated that the liquidators are focused on securing the assets for the benefit of all stakeholders. While this process and investigations take place, trading on the exchange is suspended.
David Ruscoe and Russell Moore from Grant Thornton New Zealand were appointed liquidators of Cryptopia on Tuesday. Ruscoe said, “We realise Cryptopia’s customers will want to have this matter resolved as soon as possible. We will conduct a thorough investigation, working with several different stakeholders including management and shareholders, to find the solution that is in the best interests of customers and stakeholders. Given the complexities involved we expect the investigation to take months rather than weeks.”
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